Binance's ex-CEO begins prison sentence in California
Binance's billionaire founder Changpeng Zhao has reported to a low-security federal prison in Lompoc, California.
Former Binance CEO Changpeng Zhao, center, departs federal court in Seattle on April 30, 2024.
Zhao was sentenced to four months in prison in April after pleading guilty to charges of enabling money laundering at his crypto exchange.
The sentence handed down to the former Binance chief was significantly less than the three years that federal prosecutors had been seeking for him.
The defense had asked for five months of probation. The sentencing guidelines called for a prison term of 12 to 18 months.
“I’m sorry,” Zhao told the judge before receiving his sentence, per Reuters.
“I believe the first step of taking responsibility is to fully recognize the mistakes,” Zhao reportedly said earlier Tuesday in court. “Here I failed to implement an adequate anti-money laundering program... I realize now the seriousness of that mistake.”
Zhao, commonly known as CZ, struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world’s largest cryptocurrency exchange. As part of the settlement, Zhao stepped down as the company’s CEO. Though he is no longer running the company, Zhao is widely reported to have an estimated 90% stake in Binance.
Zhao, who wore a dark navy suit with a light blue tie to court, is accused of willfully failing to implement an effective anti-money laundering program as required by the Bank Secrecy Act, and of allowing Binance to process transactions involving proceeds of unlawful activity, including between Americans and individuals in sanctions jurisdictions
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